Case Studies
CASE 1: BUSINESS POSITIONING IN A CHANGING ECONOMIC CLIMATE
Project Background:
Our client, a market leader in its industry had grown considerably over its 35 year history to a point where it had a workforce of 70 and nationwide coverage working out of two facilities. The client had extensively grown its business across a number of diverse areas and as a consequence had developed its operation down a somewhat stand alone departmental route.
Changing market conditions had highlighted the need for each of these departments to work together to enhance their product offerings and the overall brand image of the company in order to sustain and grow existing revenues. The client sought PBS’s assistance with developing a market driven strategic plan for the business that understood the uniqueness of the various departmental offerings but which also focused on the overall direction of the composite business.
Project Objectives:
To objectively assess this, PBS focused on testing whether there was good alignment between the company’s current strategy, its organization, personnel and business processes. This assessment would then be used as the basis for a new strategic planning process. The resulting plan would concentrate on capitalizing on the overall strengths of the business and would actively focus on maintaining market share within each of its divisions.
Project Approach:
Initially PBS met with the MD of the organization to scope the project. As the company was organized across a number of diverse departments, it was agreed that a team comprising members of each of these departments be set up to explore and agree an appropriate strategic direction for the overall business.
The PBS approach was divided into three distinct phases:
Phase 1- Positioning
An analysis of where the business currently stood and an objective assessment of whether crossover business opportunities existing between the various departments. This work included a detailed customer analysis and the facilitation of constructive discussion among the team members on how to capitalize on identified opportunities. From this work awareness was raised within the group of lost opportunities which resulted from their individual approaches to the market.
Phase 2 - Objective Setting
Once the company had agreed where they wished to position themselves within the marketplace, they then needed to agree on a comprehensive set of objectives for achieving this goal. PBS facilitated the setting of these objectives across the areas of Finance, Marketing, Sales, Organisation, Execution and Communication.
Phase 3 - Implementation
Work with this client is ongoing with the agreed approach in Phase 3 being the formation of a key management team to oversee the implementation of the strategic plan, to project plan according to an agreed timetable and to review, on an ongoing basis, the execution and results of the plan to further aid in the development of the business. PBS’s role within this stage will be to facilitate the team members in the ongoing action and review process.
Project Results:
The client had experienced significant growth during a period of high economic activity and its business had effectively developed into individually successful stand alone business units within an overall umbrella organization. This meant that, on occasion, each of these departments were effectively competing with the others for customers, and crossover business opportunities remained unidentified and lost to the overall business. Utilising the insights gained during Phase 1 of the project the client became more aware of the impact decisions made in one department had on other departments and hence the overall business. A cohesive team approach was established and a better awareness of the overall business was created. In addition, agreement was gained across all company departments as to the best positioning for the company as a whole and the part that each department played within that overall strategy.
As a result:
- Targeting of new business became more selective.
- Pricing was adjusted on certain elements of the business to capitalize on crossover opportunities.
- The individual operations of the business became more focused on their contribution to the overall business and not just their own department.
- The management became more focused on long term achievable targets.
